Sourcing Approach

Sourcing Approach

At CEMEX, our relationship with our suppliers is integral to assure our ultimate objective: to serve the needs of our customers and create value for our stakeholders by becoming the world's most efficient and innovative building materials company. We constantly strive to improve our supply chain to continue innovating and implementing the most sustainable techniques in our day-to-day operations.

We focus on these relationships as we acquire the goods and services our company needs to operate, leveraging the expertise of our team at local, regional, and global levels to perform efficiently and effectively. At the same time, we capture economies of scale from our negotiations and manage our strategic supplier relationships to achieve the best cost/benefit from our sources of supply by certifying suppliers and contractors in key areas.

At CEMEX, we are always looking ahead and constantly innovating. Consequently, we aim to create a culture of communication that reflects the best relationship with our suppliers, while working towards our company’s objectives.

In this section, you will learn about our relationship with our suppliers, what we expect from them, and what we are preparing for the future.

Our objective is to generate strategic value by consolidating our procurement volume, attaining the best cost for our company, using the best products and services to sustain CEMEX’s position of leadership in our industry, and obtaining conditions that add value to the supply chain.

Benefits:

Obtain cost reductions in the procurement of products and services

Identify best practices that can be repeated and standardized across CEMEX

Establish the supplier relationships necessary to support CEMEX’s goals

Give CEMEX a competitive advantage by reducing the total cost of ownership of the family or line of products and services negotiated

Our company has operations in more than 50 countries all over the world, where we work in cooperation with many diverse suppliers.

Supplier Relations + Fair Dealing

CEMEX’s success depends on supplier relationships that are built on trust and mutual benefit. We will always manage our supplier relationships with honesty, respect, and integrity, offering equal opportunities to all concerned parties.

1. Encourage suppliers to adhere to the highest ethical standards and practices

CEMEX encourages its suppliers to adhere to the standards of its Code of conduct when doing business with us and, therefore, strongly advises its suppliers not to perform or engage in any act prohibited by law or by its Code.

2. Seek for equality and fairness in supplier relations

CEMEX provides suppliers with equal opportunities to bid on and win contracts. CEMEX always conduct its procurement processes consistently, respectfully, and confidentially. In all cases, CEMEX bases the evaluation of bids for the selection of suppliers on the company’s established criteria.

3. Honor contracts and proprietorship, obeying the law, and complying with regulations

CEMEX honors its agreements and commitments, including copyrights, licenses, and other proprietary claims. Consequently, its employees do business only with contractors or suppliers who are qualified to use, transfer, or market products and/or services subject to royalties or other obligations. Therefore, contractors and suppliers are required to prove the authenticity and legitimacy of their products and services.

4. Comply with all anti-bribery laws

Suppliers do not receive, nor promise or accept a promise to receive, a bribe or any other type of improper payment in violation of international anti-bribery laws.

5. Maintain standard business practices related to gifts, services, and other courtesies

Gifts, services, and other courtesies from our current or potential CEMEX suppliers are acceptable only if they are given for legitimate business reasons. In all cases, such courtesies must be lawful and in line with standard business practices.

6. Ensure basic conditions of Labor

Suppliers have not and will not directly or indirectly make use of slave, forced or compulsory labor in any form, and/or engage children under the corresponding minimum ages for employment, as defined in all international labor standards and applicable national legislation on child protection.

7. Generate environmental and biodiversity engagement

Suppliers must comply with all applicable laws relating to the environment, the disposal of materials, the discharge of chemicals, gases or other substances or materials into the environment, or the presence of such materials, chemicals, gases or other substances in or on its facilities and/or its affiliates’ facilities.

8. Promote high priority on Health and Safety

Contractor/service provider and all its subcontractors represent and warrant to comply with all applicable laws, CEMEX requirements, approved codes of practice and industry guidance relating to health and safety.

A Health and Safety program is in place that sets out arrangements for: the identification, management, and control of hazards and risks associated with the activities/services to be provided; training and certification of personnel; formal induction and permit processes before work commences; reporting of all incidents and near misses; and periodic auditing for compliance with health and safety rules.

9. Enhance the Diversity and Equality

CEMEX supports diversity and equality in employment opportunities. CEMEX expects from its suppliers to comply with all laws relating to discrimination in hiring or employment practices.

10. Strengthen Human Rights

CEMEX considers human rights basic for its operation and its supply chain. Therefore, CEMEX expects from its suppliers to support and respect the protection of internationally proclaimed human rights and to ensure that they are not complicit in human rights abuses and discriminations.

Supply chain diversity is a key consideration for our organization; it allows us to answer the needs of our final clients more efficiently. Additionally, we enjoy a wider range of options that allows us greater flexibility to compete in a constantly changing market, providing the most effective and efficient ways to satisfy market needs.

We are committed to work with our suppliers to create an environment of continuous improvement that benefits everyone involved.

Moving forward with innovative and creative new ways to communicate with our suppliers through new e-tools

Sharing best practices with our suppliers

Offering training, certification, and courses to our suppliers that enable us to improve and grow together

Continuing to be recognized as a sustainable organization

Questions?

We're here to answer any questions or concerns you might have. We also appreciate any feedback you'd like to give. It's only through close relationships and an ongoing dialogue with our customers that we're able to better serve your needs.